Bulgarian retirees in times of crisis

published on 4/21/10 1:39 PM

Photo: Milka Dimitrova

Bulgarians have the lowest incomes in Europe, statistics show. Labour incomes in Bulgaria are three times lower than those in the EU. In Bulgaria there are more than 2 million retirees out of a total population of 7.5 million people. The Bulgarian retirees do not enjoy financial comfort. Pensions are much lower than those in the EU. They are lower even than those in neighboring Balkan countries. Bulgarian retirees do not enjoy vacations but work till the very end, especially in times of crisis.

The National Social Security Institute says the exact number of retirees in Bulgaria is 2 million and 200 thousand people. The average pension is about 281 levs or 140 euro. The minimum pension is 136 levs or 68 euro a month. Nearly 43% of the money in the national budget is used for paying pensions. Only 40 % of the money comes from social security payments, while 60% is covered by the state. In order to change the negative trend, stimuli for the workers to stay longer on the labor market must be devised. It is one of the major principles in the pension reform in Bulgaria. It will allow the pensions to be defined by the continuity of employment, salary, and social security payments. The measures are expected to raise pensions in the country.

But this is the future. Today’s reality is different. The economic crisis leads to unemployment and scarcity. The previously envisaged raising of pensions of people above 75 has been postponed. How do Bulgarian retirees manage to live in times of crisis? They have great difficulties and expect the next small pension rise. Here is what a retiree from the Bulgarian village of Mirkovo near Plovdiv says.

“It is very hard,” she says. “I count on my children. If they didn’t help I wouldn’t know what to do. I spend 100 levs (50 euro) on medicines monthly. My whole pension is 200 levs (100 euro). I worked 36 years as a clerk in a military establishment. I do not agree with the idea to raise the retirement age, as Bulgarians are at the first place in the chart of heart diseases in Europe.”

Another Bulgarian retiree sells newspapers to earn some additional incomes.

“I work because it is impossible to live with 100 levs (50 euro) a month. I retired in 1987 with after working for 40 years. I have been selling newspapers for 10 years in order to be able to earn my living. I have also raised a child without parents and I still try to help him. I don’t want him to support me. I will continue to work. “

The rise of unemployment in the country has caused other phenomena. Some retirees say they support their children who have lost their jobs. There are also a number of old people who count on money sent from their children, who work abroad. But the crisis has caused these additional incomes to shrink.” Retirees living in the rural areas also count to a great extent on their agriculture production.

But what about the old Bulgarians living in the cities? At the biggest market in Sofia, retirees search for the best prices in order to save some money. However there is another type of retirees. They have savings or expensive real estates but the number of those people is small. If you ask a Bulgarian retiree how much their pension must be, in order for them to live normally, the answer is 500 levs (250 euro) a month.

English: Alexander Markov

По публикацията работи: Milka Dimitrova

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